Question

A. The original Phillips curve......


1. Indicate the inverse relationship between the inflation rate and the unemployment rate

2. Illustrate the positive relationship between the inflation rate and unemployment rate

3. Shows the phenomenon of stagflation

4. Shifts to the right when aggregate demand increases


B. To reduce structural unemployment in South Africa, the government should....


1. Take steps to reduce population growth

2. Apply stricter immigration control

3. Raise taxes and increase government spending to boost aggregate demand

4. Make education and training available to everyone who is willing to improve their skills

Answer 1

The correct answer are

1. Indicate the inverse relationship between the inflation rate and the unemployment rate

4. Make education and training available to everyone who is willing to improve their skills.